The Presidency revealed on Friday that nine oil-producing states got a total of N625.43 billion in 13 per cent oil derivation, subsidy, and SURE-P repayments from the Federation Account during the previous two years.
This is because, as the report indicated, President Muhammadu Buhari had required that all debts owed to states be paid, regardless of their political leanings.
Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers were among the states mentioned in a statement released by Garba Shehu, Senior Special Assistant to the President (Media & Publicity). The reimbursements covered the years 1999–2021.
A total of N477.2 billion was issued to the nine states as a refund of the 13% derivation money on withdrawal from the Excess Crude Account (ECA) without deducting derivation from 2004 to 2019, according to the statement, leaving an outstanding balance of N287.04 billion. The data was received from the Federation Account Department, Office of the Accountant General of the Federation.
According to the report, NNPC refunded the states N64.8 billion from the 13 per cent derivation fund for deductions made between 1999 and December without paying derivation to Oil Producing states.
In addition, the Presidency said that President Muhammadu Buhari approved a windfall of N860.59 billion for the beneficiary states in the form of refunds.
The statement added: “According to the figures, under the 13 per cent derivation fund on withdrawal from ECA without deducting derivation from 2004 to 2019, Abia State received N4.8 billion with an outstanding sum of N2.8 billion, Akwa-Ibom received N128 billion with an outstanding sum of N77 billion, Bayelsa with N92.2bn, leaving an outstanding of N55 billion.
“Cross River got a refund of N1.3 billion with a balance of N792 million, Delta State received N110 billion, leaving a balance of N66.2 billion, Edo State received N11.3billion, with a balance of N6.8billion, Imo State, N5.5 billion, with an outstanding sum of N3.3 billion, Ondo State, N19.4 billion with an outstanding sum of N11.7bn while Rivers State was paid 103.6 billion, with an outstanding balance of N62.3 billion.
“The States were paid in eight instalments between October 2, 2021, and January 11, 2022, while the ninth to twelfth instalments are still outstanding.
“On the 13 per cent derivation fund on deductions made by NNPC without payment of derivation, the nine oil producing States were paid in three instalments this year, with the remaining 17 instalments outstanding.
“Under this category, Abia State received N1.1 billion, Akwa-Ibom, N15 billion, Bayelsa, N11.6 billion, Cross River, N432 million, Delta State, N14.8 billion, Edo State, N2.2 billion, Imo State, N2.9, billion, Ondo State, N3.7 billion, and Rivers State, N12.8 billion.
“Meanwhile, the benefitting states shared N9.2 billion in three instalments in April, August and November 2022 as refunds on the 13 per cent derivation exchange rate differential on withdrawal from the ECA.
“The three largest benefitting States were Akwa Ibom (N1.6 billion), Delta State (N1.4 billion) and Rivers State (N1.32 billion).
“Similarly, all the nine states received N4.7 billion each, totalling N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015. The refund for all the states and local government councils was paid on November 10, 2022.
“The Federation Account also paid N3.52 billion each as a refund to local government councils on withdrawals for subsidy and SURE-P from 2009 to 2015 on the same date in November.
“President Buhari considers it a matter of honour and decency that debts owed to states or anyone for that matter be repaid, and in time without regard to their partisan political affiliations.
“The President will continue to render equal service to all the states of the federation, and an acknowledgement of this by Governor Nyesom Wike of Rivers State and the others is not out of place.
“The refunds to the oil-producing states will continue.”